Challenger Energy secures investment from Charlestown Energy Partners
Challenger Energy Group PLC has announced a significant investment of £1.5 million by Charlestown Energy Partners LLC. This investment will initially take the form of a loan and, contingent upon specific conditions, will convert into an 8.7% equity stake in Challenger Energy. The conversion price is set at 0.168 pence per share, a 20% premium over the current share price.
The New York-based Charlestown Energy Partners, recognized for its strategic investments in energy sectors, particularly in exploration companies, has committed to bolstering Challenger Energy’s financial base. This investment is strategically timed to facilitate Challenger Energy’s upcoming technical work on the AREA OFF-3 block and to support the company through the completion of the Chevron AREA OFF-1 farm-out in Uruguay. Upon successful completion, Challenger Energy will receive $12.5 million in cash proceeds, ensuring the company is fully funded for the foreseeable future.
In alignment with this investment, Charlestown’s Managing Member, Mr. Robert Bose, is set to join the Board of Challenger Energy. Mr. Bose’s extensive experience in global exploration and investment will be invaluable as Challenger Energy aims to expand its operational and strategic horizons.
Charlestown Energy Partners, a subsidiary of Charlestown Capital Advisors, has been an active participant in global energy exploration since 2016. It holds significant positions in several exploration ventures, including a cornerstone share in Sintana Energy Inc., which has seen substantial growth due to successful explorations in Namibia’s Orange Basin.
The partnership between Challenger Energy and Charlestown Energy Partners is poised to create substantial value for both entities. Charlestown’s expertise in strategic investment and its track record of successful early investments in exploration companies align well with Challenger Energy’s operational goals and its focus on the Atlantic margin. This collaboration not only strengthens Challenger Energy’s financial position but also enhances its strategic capabilities in navigating the complex landscape of global energy markets.